Parts and labor costs fall for second straight quarter: TMC, Decisiv

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Parts and labor costs for heavy-duty truck maintenance declined for the second consecutive quarter in the first three months of 2026, even as freight activity strengthened, according to the latest benchmark report from the American Trucking Associations’ Technology & Maintenance Council (TMC) and Decisiv.

The Decisiv/TMC Parts & Labor Service Benchmark Report found combined parts and labor costs fell 3% quarter over quarter in Q1, following a 1.1% decline in the fourth quarter of 2025.

Truck awaits maintenance
(Photo: iStock)

The decrease was driven by a 4.6% drop in parts costs and a 0.6% decline in labor costs. Compared to the same period a year earlier, combined costs were down 0.8%, with parts costs slipping 0.1% and labor costs falling 1.7%.

The cost reductions came despite improving freight conditions. American Trucking Associations data showed truck tonnage increased 0.7% in January, 2.9% in February and 0.3% in March, giving the industry its strongest combined sequential and year over year quarterly performance since the third quarter of 2017.

“A strengthening freight market in Q1 2026 undoubtedly brought higher mileages and increased service activity, yet the Decisiv/TMC Parts & Labor Service Benchmark Report shows costs moving lower during the same period,” said Tim Hardin, president and CEO of Decisiv. “That kind of result underscores the value and importance of enhanced cost control and improved efficiency, turning a busier quarter into a more profitable one instead of a more expensive one.”

Combined parts and labor costs declined in 15 of the 25 Vehicle Maintenance Reporting Standards (VMRS) system categories tracked in the report. Parts costs fell in 16 categories while labor costs declined in nine.

The report also incorporates a larger dataset than previous editions, providing more detailed cost information across VMRS codes to improve service cost analysis and trend tracking.

The benchmark is based on maintenance data covering more than seven million assets and more than 300,000 monthly maintenance and repair events at more than 5,000 service locations.

“We’re pleased to see two consecutive quarters of declining parts and labor costs,” said Robert Braswell, executive director of TMC. “The information delivered in the Decisiv/TMC Parts & Labor Service Benchmark continues to provide Council members an excellent means of comparing how their operations are performing to industry trends so they can take action accordingly to changing industry conditions.”

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